ISLAMABAD (APP) - The Islamic Development Bank (IDB), Jeddah has consented to provide loan of $140 million to replace decades-old and obsolete signaling system of Pakistan Railways. Under the agreement, the Bank would finance the procurement, installation and commissioning of equipment to establish modern computerized signaling system including training, project supervision, consultant and corresponding project contingency. Minister for Railways Haji Ghulam Ahmad Bilour confirmed this development and said the project will be completed by 2012 and under the agreement, Automatic Train Protection (ATP) system would be installed in 160 locomotives. Most of the existing signaling equipment consists of very old mechanical gear. The relay interlocking system installed in 1960s at 40 stations has also outlived its normal life, he added. He said the overhead wires over which safety circuits work, have outlived and are virtually non existent and various projects have been proposed for the main and branch lines to replace the existing obsolete signaling systems. With the installation of modern signaling system, Pakistan Railways will enter into new era by enhancing the performance of the department in terms of safety and reliability for the passengers, he said. The minister said that signaling systems play an important role in smooth, safe and efficient train operation. These systems are essential to avoid train accidents, operate trains safely and enhance transportation efficiency and capacity. It would contribute a lot towards the goal of transporting Pakistan Railway with competitive organization through increased line capacity and reduced travel time, he added. Pakistan Railways installed centralized traffic control and auto block systems in 1970 and 1993 on main line from Karachi to Kotri, he said. He said consequent upon the assassination of Shaheed Mohtarma Benazir Bhutto, on December 27, 2007, violence erupted across the country and enraged mobs attacked the railway infrastructure including stations, other buildings, signaling, telecommunication network, trains and other vital installations resulting in heavy losses.